Micro-lenders can now raise up to $10 million a year overseas

Mumbai: Microfinance institutions may soon be able to borrow up to $10 million in a year overseas.

In a press release issued on Monday, the Reserve Bank of India said that MFIs may be permitted to raise funds through External Commercial Borrowing (ECB) under the automatic route.

The move is expected to address the issue of liquidity that the microfinance sector has been witnessing in recent times, according to leading players in the industry.

The criteria
According to the RBI guidelines, MFIs should have a satisfactory borrowing relationship for at least three years with a scheduled commercial bank authorised to deal in foreign exchange.

The bank would also require to issued a certificate of due diligence on ‘fit and proper' status of the board or committee of management of the MFI that is borrowing.

The ECB funds should be routed through normal banking channels.

In addition, NBFC-MFIs will also be permitted to borrow from multilateral institutions, such as International Finance Corporation and Asian Development Bank, the RBI said.

Other MFIs will be permitted to avail themselves of ECBs from international banks, multilateral financial institutions, export credit agencies, overseas organisations and individuals, subject to certain conditions, said the RBI.

The RBI has also increased the ECB limit of NGOs (non-government organisations), engaged in microfinance activities, to $10 million in a financial year, as against the current $5 million.

Twitter Gets $300 Million Boost From Saudi Prince

Saudi Prince Alwaleed bin Tala has made a $300 million investment in Twitter through his firm Kingdom Holding, Bloomberg is reporting.

Twitter did not immediately respond to questions about the investment, but Bloomberg said the prince's company purchased a "strategic stake" in Twitter.

Alwaleed, ranked the richest Arab businessman by Arabian Business Magazine, is a frequent tech investor. He owns stock in or has poured money into Apple, Hewlett Packard, and many others. According to CNET, he was active in the dot-com boom, investing in various Web companies such as Priceline

IT sector to create 2.5 lakh jobs in 2012, says Infosys

Krish Gopalakrishnan, Co-Chairman, Infosys says that the IT sector in India is projected to add around 2-2.5 lakh jobs in the next one year. He however cautioned of an economic uncertainity in the short term.

"In the medium to long term I am very optimistic about the prospect for the IT industry because technology investment will continue to grow and most of the companies today are looking at India based development centres, captive centres or service providers to support them. The critical mass has already been built in India and so I am very optimistic about the prospects for companies that are both multinationals and domestic companies based in India," said Gopalakrishnan.

Gopalakrishnan told ET Now: "When I look back in 2011, I am actually positive because in spite of a slowdown in the world economy the industry has done reasonably well. Last time in 2008, the growth came down to single digit whereas this time Nasscom projects a growth of about 16-17% which is actually very good growth rate given where the global economy is."

Commenting on Rupee depreciation, Gopalakrishnan said, "The volatility is always very difficult to handle. In the last 6 months, the rupee has depreciated by 20%, it is unprecedented and such volatility is very difficult for anybody to plan. If you plan to import something, already your costs have gone up by 20%. That is very difficult to plan and factor in. We need less volatility, we need more predictability on rupee movement."

Recent surveys of chief information officers (CIOs) by research firms like Citigroup and Forrester show that IT major Infosys will be much more under pressure in the months to come than its peers.

The Forrester report that surveyed over 1,000 CIOs found that in the next 12 months Infosys, which had 105 respondents, would see a 4% fall in client spends. TCS with 111 respondents will see a 23% rise in client spends, Cognizant with 78 respondents will see a 13% rise, Wipro with 94 respondents will see a 13% rise, and HCL Tech with 44 respondents will see a 11% rise.

V Balakrishnan, CFO of Infosys, recently said that the global uncertainty has made it tough to acquire large contracts as client spends will remain slow. He added that clients are cautious about committing to long-term projects and it would be difficult for Infosys to achieve the top end of the 3%-5 % sales growth guidance for October-December and the 17.1-19 .1% sales growth for 2011-12.

Silver Lake, Microsoft working on new Yahoo stake offer

A consortium of private equity group Silver Lake, software giant Microsoft Corp and venture capital firm Andreessen Horowitz are reworking their bid for a minority stake in Internet company Yahoo Inc, a source familiar with the matter said on Friday.

Silver Lake's consortium is working on a new offer for a stake of 10 to 15 percent in Yahoo after the company asked for improved terms, the source said.

The new offer would be predicated on Yahoo finding a new, world-class chief executive that the consortium would support, the source added. Yahoo's board fired CEO Carol Bartz in September and has yet to hire a permanent replacement.

The Wall Street Journal reported earlier on Friday, citing people familiar with the matter, that private equity firms seeking to acquire just under 20 percent of Yahoo were working on new offers for a smaller stake at a higher per-share valuation.

TPG Capital, which sources previously told Reuters had also bid for a minority stake, did not respond to a request for comment. Representatives of Silver Lakeand Microsoft declined to comment while an Andreessen Horowitz spokeswoman could not immediately be reached for comment.

"As previously announced, the board is evaluating various alternatives as part of its comprehensive strategic review process, all of which are designed to enhance shareholder value and promote growth and innovation at Yahoo," a Yahoo spokesman said.

"The board's process is open to all alternatives and has not restricted the range of various options or proposals in any way," he added.

The first offer by Silver Lake's consortium valued Yahoo at $16.6 per share, about $1 per share less than what TPG proposed, people familiar the matter had previously told Reuters. Yahoo shares closed down 1.3 percent at $14.96 on Friday.

Yahoo has several available options. Chinese e-commerce giant Alibaba, in which Yahoo has a 40 percent stake, is preparing a $4 billion bank loan to buy back that stake, Thomson Reuters publication Basis Point reported on Thursday, citing sources.

TCS: 2012 will be challenging for IT cos

The depreciation in rupee's value is likely to benefit software exporters, but the global macro economic situation will pose a challenge for the industry next year, a top official of IT giant TCS said.

"This year has gone very well and better than what we expected. Next year it will be some kind of stressful environment and every government will try to avoid the Lehman kind of situation,"Tata Consultancy Services Executive Director and CFO S Mahalingam told reporters on the sidelines of a CII event here.

The rupee movement has been very volatile and in the long-term, this depreciation is likely to benefit the IT industry (largely dependent on the US market) as a whole, he said.

"The rupee movement has been going like a 'yo yo'. It's a roller coaster ride. For longer term it might be good for my kind of industry."

This quarter (Oct-Dec) TCS hedged the rupee at 46.5 per dollar and next quarter it will be 47.5, but after that it is open, he said.

The global macro economic situation has been the major concern for the industry and it will continue to remain a challenge next year, he said.

"Agility is going to be a very important for the sector. Every passing year is more challenging than the coming year and most (companies) think to turn these challenges into opportunities," he added.

7 secrets to super customer service

In the past year, my wireless carrier refunded me $50 in international roaming charges that were my fault; airline reps saved me hundreds by rebooking my delayed or canceled flights for free; and my sofa was reupholstered at no charge, long after the one-year warranty was up.

My list goes on. I'm either extremely lucky or extraordinarily demanding, right? Nope. I'm just good at getting the companies I do business with to treat me well -- and to do the right thing when a situation goes awry.

In an age of deteriorating customer service -- two out of three consumers switched at least one service provider last year because of poor treatment, a recent survey by Accenture found -- that's no small feat. But it's one you can achieve too.

After consulting with customer service experts, psychologists, industry insiders, and the smartest consumers around (MONEY readers, natch), I've arrived at the secrets to getting superb service that follow.

1. Even pros are suckers for flattery

Front-line phone reps are cursed at, threatened or belittled seven times a day on average, according to researchers at Pennsylvania State University who studied two call centers for a major phone company. And that treatment can trigger "service sabotage," such as dropped or misdirected calls. Don't be one of those callers, and you already have a leg up.

Take niceness a step further, suggests Noah Goldstein, a professor at UCLA Anderson School of Management. When a customer service agent is friendly and responsive, tell him or her that you're so impressed that you want a supervisor's contact info so you can write a positive e-mail.

Do this before you make a tough request. You've offered to do a favor, says Goldstein, so the agent will be motivated to return it. (Follow through, of course.)

Flattery has paid off for Bozeman, Mont., retiree Al Banwart, 66. After witnessing a traveler tirade at the airport, he told the gate agent how well she'd handled the difficult customer. Booked for two middle seats, he and his wife were called to the podium before boarding. "I was handed two first-class tickets," says Banwart, "with a definite wink."

Hold your temper, admit your mistakes, employ humor; whatever it takes to charm. People are more apt to do a good deed for someone they like, and those positive feelings can be generated quickly: In a study of how people feel toward each other and compliance with requests, researchers at Santa Clara University in California found that even a quick interaction can make you seem likable, and that nearly doubles your chances of getting yes for an answer.

"Politeness sounds obvious, but it's the secret weapon," says Christopher Elliott, author of "Scammed: How to Save Money and Find Better Service in a World of Schemes, Swindles and Shady Deals." "You can pre-empt almost any problem by being diplomatic."

2. Loyalty doesn't pay unless you act disloyal


Seek out the department with the most power to bend the rules: retention.

"Hint broadly that you're going to leave," says Linda Sherry, spokeswoman for the advocacy group Consumer Action. "That may get you a ticket to retention."

This technique worked with my cable company. After my promotional rate had expired, my bill shot up. I called customer service and sweetly said, "My cable bill is just too high right now, and I can't afford it. I want to scale back my package. Otherwise, I'll probably have to cancel. How can I do that?"

I was immediately transferred to an agent in the retention department, who slashed my bill by $40 a month and threw in a year of Showtime to boot. If hinting gets you nowhere, ask to speak to someone in the retention or sales department directly.

Companies spend two to 20 times as much finding new customers as they do keeping old ones, says John Goodman, founder of the customer experience research firm TARP. Exploit that imbalance.

3. Companies count on you to give up

The desk clerk is squirming or glued to a computer screen. The phone rep won't stray from a script. You're probably at the wrong rung of the authority ladder. Cut your losses. A few simple words will do the trick: I don't want to waste your time. Is this something you're authorized to do?

"More often than not, they will say, 'Well, I can do this but not that,' or explain what the procedure is," says New York City psychologist Guy Winch, author of "The Squeaky Wheel."

The truth is, most businesses can make things right -- if you reach the right person. But the majority of companies don't empower low-level employees to make decisions, says customer service consultant Colin Shaw, CEO of Beyond Philosophy.

What's more, some companies count on you walking away, says Winch, going so far as to build in inconveniences like long wait times. No wonder that even though a third of consumers say they're treated rudely at least once a month, few report the problem, according to a recent study in the Journal of Service Research.

Rather than give up, try representative roulette, something Chris Constantino, a 27-year-old engineer from Milford, Conn., has employed successfully. "When I called to reschedule a flight I'd missed," he recalls, "the first person told me it would take the equivalent miles of a trip to Hawaii. The second said it would cost $500. Third time's a charm! I got away with just a $50 charge."

4. People are paid to monitor Facebook


When things don't go your way, make the Internet your microphone by posting a complaint on the business's Facebook page or your Twitter feed.

"Companies have departments dedicated to surfing the Internet and making sure their brands are protected," says Sherry. Many firms have separate Twitter handles for help, such as @ComcastCares, @DeltaAssist, and @Zappos_Service. AT&T invites consumers to use Facebook and Twitter to reach the company, calling the service "social media customer care."

When Jonathan Whitbourne's dryer malfunctioned just six months after the warranty was up, he posted a complaint on Maytag's Facebook page. A rep responded within an hour. The result: The 37-year-old Norwalk, Conn., editorial director had to pay a $119 fee for the repair technician, but Maytag agreed to cover parts and labor beyond one hour. Based on other customer stories, he estimates that would have added up to $400.

As more consumers catch on, you may not be able to attract much attention via social media. But for now, keep this tool in your arsenal.

5. Your solution may be better than the rep's


Last winter, on my trip home from Pakistan to New York, I found myself stranded in Abu Dhabi after bad weather caused me to miss my connection. When I heard the airline agents telling other stuck Americans that all the hotels at the airport were booked, I immediately asked for outside accommodations. I knew that U.S. citizens could leave the Abu Dhabi airport without a visa. The staff seemed surprised by my request, but quickly handed me vouchers for a car service and a night's stay at a lovely seaside hotel.

My secret? I was aware of what I was entitled to, so I made the agent's job easier by proposing a workable solution (one that my less informed fellow travelers hadn't already asked for). Anytime you have a beef, the more specific you are about what fix will make you happy, the better the likely outcome, says John Tschohl, president of Service Quality Institute, a corporate training firm: "Vague requests get you vague results."

You have to know the rules of the game, from what's legally required to what hotel front-desk staff, airline employees, and rental-car agents can and can't do. "The agents have a lot less discretion these days," says Sue, a veteran of United Airlines. Automated systems have made it next to impossible for them to waive baggage or standby fees. But agents have more latitude to issue miles or upgrade your seat.

A rental-car clerk may have the power to cut your rate. Jesse Rice, 28, of Bloomington, Ind., who has worked in customer service for a decade, including three years at a car rental agency, suggests accepting insurance in exchange for a price break. "We got paid more for selling the insurance, not for the total price," he notes.

Talk to friends for insider dish, get chummy with the staff, and check out tips on consumerist.com, frequentflier.com and inflightinsider.com. "Businesses like to say an informed customer is the best customer, but they don't always mean that," says Elliott.

6. A good gripe is like a well-made sandwich

Set aside your blind rage at the ineffectual salesclerk and delayed delivery man and learn to gripe constructively. Your request will be more appetizing, says Winch, if you build a "complaint sandwich."

The first slice of bread is the "ear opener"; words that keep your target from feeling attacked. We're wired to get defensive when someone complains, but studies have found that starting with a positive point makes the listener more receptive to criticism.

Next get to the meat; the specific problem you're having and the solution you're hoping for. Top off the sandwich with a grateful statement that shows you're a reasonable person who's deserving of help; and likely to stay a loyal customer if satisfied.

Your delivery counts too. When you're speaking to someone on the phone or in person, limit fillers such as "I mean" and "You know?" John Sparks of the University of Dayton, citing studies of courtroom transcripts, points out that listeners associate phrases like that with a lack of credibility.

7. The top 1% want to hear from you

Well, maybe not. But complaining to the president or CEO isn't just a tired cliché. The tactic works, even at large corporations, because executives have elite service staff dedicated to solving problems quickly, says Sherry. "They are sensitive about the reputation of their company, so their team is very motivated to help you."

Thanks to the wonders of Google, you can easily find the phone number or e-mail of top-ranking executives at companies both big and small. If a quick search doesn't yield results, dig up the address and phone number in a company's registration statement, free at the SEC's EDGAR site. Other websites that are rich in contact information: Jigsaw.com, Hoovers.com and Google and Yahoo Finance.

This technique has worked for many MONEY readers, including Ric Franchetti, a 58-year-old finance consultant from Plano, Texas. When the battery on his electric lawn mower from Home Depot stopped holding a charge after a year, he was told that the extended warranty didn't cover the batteries because they were expendable. Undeterred, Franchetti dashed off a polite letter to the $68 billion company's CEO. Six days later, the local store manager was at his door. When replacement batteries didn't fit, the manager gave him a new mower. "They even took my old one away," he adds.

Dell to increase focus on small & medium businesses

Pune: In a bid to tap into the increasing IT usage by small and medium businesses (SMBs), Dell today announced it would be increasing focus on this rapidly growing market segment. Rekuram Vardharaj, country marketing manager, medium business, Dell India said that there were close to eight million SMBs in the country, of which about 1.5 million were adressable by IT.

"An increasing number of small and medium businesses are using IT and we'll aim to provide bespoke solutions that can address their needs," he said. Speaking at an event in Pune, Vardharaj pointed out that the city alone had close to 80,000 SMB enterprises, with the IT spend by medium businesses in the range of $70-75 million making it one of the focus markets for the company. THE ICT spend by the SMBs in India is estimated to be in the region of $10bn.

"The offerings will be aimed to addressing the pain points of these enterprises which tend to be issue of constrains -of time, budgets and resources. We would like to partner with the businesses and provide hardware and service solutions with the minimum possible downtime for the customer," he said.

Dell is the number one brand in the consumer and SMB segments in the country. It has in the recent past launched a number of SMB specific products like the Equal Logic storage solutions and the Vostro V131 laptop.

C and S Electric acquires Etacom ISD BV for 20 million euros

New Delhi: Power equipment maker C&S Electric Ltd on Wednesday said it acquired Netherlands-based Etacom ISD BV for 20 million euros (about Rs 139 crore).

Etacom ISD BV is Dutch holding company for Etacom Group that specialises in manufacturing insulated busbars. The acquisition was done through C&S Electric subsidiary C&S Electric International BV, an official statement said.

"The acquisition is a strategic move for C&S Electric's power busbar business to extend domestic position in India to a global scale," the statement said.

The acquisition is C&S Electric's second overseas venture as it started a greenfield company in China 18 months ago. C&S Electric is engaged in the businesses of low and medium voltage switchgear, power busbars, lighting solutions, turnkey electrical contracts and diesel generating sets. The statement said revenue of C&S Electric are expected to be over Rs 825 crore while Etacom is likely to earn about Rs 125 crore revenue in 2011-12.

SKF opens Global Technical Centre in Bangalore

Bangalore: SKF, a provider of automotive and industrial engineered solutions, has opened its Global Technical Centre (GTCI) in Bangalore. The company has invested Rs 50 crore to build the centre. GTCI is expected to focus on serving customers in India and South-East Asia, as well as few global projects of the company. “The opening of GTCI reinforces our global strategy to open centres near its customers that focus on product innovations for all five SKF platforms – bearings, seals, mechatronics, lubrication systems and services,” said Mr Tom Johnstone, SKF President and Chief Executive Officer. “India is an important market for us and we are committed to support the needs of customers in growing economies. At the same time, we are focused on providing research and innovation both in India and internationally,” he added.

The centre is expected to employ about 450 engineers working in the areas of product engineering, development and testing, as well as a global laboratory for metallurgy, chemistry and bearing performance analysis.

According to Mr Johnstone, “One of our driving forces is to deliver significant energy and carbon savings to our customers with our solutions”.

Govt plans Rs 10,000-cr fund to promote electronic manufacturing

Chennai: The Union Government proposes to set up a Rs 10,000-crore Electronic Development Fund (EDF) next year, to promote electronic hardware manufacturing in the country.

Mr Ajay Kumar, Joint Secretary, Ministry of Communications & Information Technology, said the EDF will float several other funds under its umbrella to identify “deserving” R&D projects in different hardware manufacturing verticals and fund them.

All these funds will be managed by different fund managers. Though EDF will have anywhere between 25 per cent and 100 per cent equity exposure in these funds, it will not interfere in day-to-day affairs of them. The Government will, however, give some broad guidelines to be followed, he said.

Speaking to Business Line on the sidelines of an Electronics Supply Chain meet organised here today by the Electronic Industries Association of India (Elcina), Mr Kumar said the task force constituted by the Department of Information Technology, early this year came out with a roadmap for rapid growth of the electronic manufacturing industry in the medium and long term.

Five recommendations
The Government has identified five major recommendations from that report which include setting; up of a National Electronic Mission, EDF, semiconductor wafer fabs, to create policies for preferential access to procure electronic goods, encourage manufacture of specific high priority product lines by providing capital grant and creation of electronic manufacturing clusters.

On the cluster development, he said since identifying the place with all necessary infrastructure is the most difficult thing, it has been suggested that islands of good infrastructure be developed to facilitate electronic manufacturers to set up shops.

The Government proposes to support these cluster development projects with up to 50 per cent of the development cost. According to him, the development cost may run up to Rs 50 crore per 100-acre parcel.